Join our investing community

This Method is...

Discussion in 'Shares' started by Tropo, 12th May, 2009.

  1. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Tate on Trading - This Method is Bollocks
     

    Attached Files:

  2. joanmc

    joanmc Well-Known Member

    Joined:
    10th May, 2009
    Posts:
    72
    Location:
    brisbane
    hmmm another good article Tropo. I agree, this strategy is pushed as you may average a lower buy in price but to my way of thinking you could also miss a whole wack of opportunities to buy low! If a share is having a good bull run and you want say 1000 of them why would you buy 100 and then say "oh I'll wait a month to buy the next 100" and then possibly pay an extra 10% or more on a good run....crazy.

    I wonder if it is pushed by managed funds as a way to get people to keep putting money with them even when the return is dropping (cynical , I know:cool:)
     
  3. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Yep...it’s not the right approach IMHO.
    Entry is not as important (unless you are a day trader) as exit is. But still some people prefer “bottom fishing”.
    Confirmation of the move (up or down) is the right approach.
    Well...Some fund managers do have a ‘weird’ approach. That is why performance of so many funds is rather poor. :rolleyes: